Freight Brokers May Face State Liability, Supreme Court Says (2)

The US Supreme Court said freight brokers may face negligent hiring claims over injuries caused by motor carriers they hire, a ruling that could expand states’ authority to regulate the trucking industry.

Trucking shares sank after the unanimous decision on Thursday said claims that one company negligently hired another to transport goods are not preempted by federal law under an exception granting states the power to regulate motor vehicle safety.

“The relevant text provides that the Federal Aviation Administration Authorization Act’s preemption provision ‘shall not restrict the safety regulatory authority of a State with respect to motor vehicles,’” Justice Amy ...